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MACPA PIU - Spring 2009

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MACPA Professional Issues Update - Spring 2009 edition. Preso covers major trends affecting the CPA profession including the economic crisis, globalization, regulation/standards, technology, workforce, and Maryland legislative & regulatory developments
102
Professional Issues Update Spring 2009 Edition Tom Hood, CPA.CITP CEO & Executive Director Maryland Association of CPAs
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Page 1: MACPA PIU - Spring 2009

Professional Issues UpdateSpring 2009 Edition

Tom Hood, CPA.CITPCEO & Executive Director

Maryland Association of CPAs

Page 2: MACPA PIU - Spring 2009
Page 3: MACPA PIU - Spring 2009
Page 4: MACPA PIU - Spring 2009

The Formula that blew up our 401(k)s

Source: Wired magazine 17.03 March, 2009

Page 5: MACPA PIU - Spring 2009

Bernard MadoffLaw of Intractable Systemic Corruption

Any significant breach of a syndrome’s integrity (Government & Commerce) – usually by adopting an

inappropriate function – causes some normal virtues to convert automatically to vices, and still others to bend

and break for necessary expedience.

Over the course of time, corrupted organizations accumulate in society. Without correction, the

accompanying rancid cooperation blurs more than the afflicted organizations.

-Jane Jacobs – Systems of Survival

Ponzi scheme of $ 50 billionFacing 150 years in prison

Page 6: MACPA PIU - Spring 2009

This is the key question – What will the new normal look like?

Page 7: MACPA PIU - Spring 2009

You are not alone

“It is increasingly clear that the current downturn is fundamentally different from recessions of recent decades. We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.”

– Ian Davis, McKinsey Quarterly March, 2009

Page 8: MACPA PIU - Spring 2009

Emergency Economic Stabilization Act of 2008

• Signed into law on October 3, 2008• $700 Billion• TARP (Troubled Assets Relief Program

Page 9: MACPA PIU - Spring 2009

ARRA – American Recovery & Reinvestment Act of 2009

Page 10: MACPA PIU - Spring 2009
Page 12: MACPA PIU - Spring 2009

We need We got

Source: Dr. Anirhban Basu

Page 13: MACPA PIU - Spring 2009

Economic Meltdown– More Government– Less Leverage

/Credit Crunch

Mega-trends1. Regulations &

Standards

2. Globalization

3. Workforce

4. Technology

Page 14: MACPA PIU - Spring 2009

MACPA is here for you

Our goal is for us to survive this recession together and position you, our members for the recovery.

The power of your Profession is ready to work for you!

But a time of turbulence is also one of great opportunity for those who can understand, accept and exploit the new realities. It is above all a time of opportunity for leadership.

- Peter Drucker, Managing in Turbulent Times

Page 15: MACPA PIU - Spring 2009

Our Agenda - The New Normal?

• The Mega-trends– Regulations &

Standards– Globalization– Workforce– Technology

• Opportunities• So what we are

doing for you• Tools for surviving

& thriving

Page 16: MACPA PIU - Spring 2009

Regulations & Standards

Page 17: MACPA PIU - Spring 2009

The infrastructure for the free market was found to be in disrepair in this latest market crisis and the CPA profession is a critical

component

Infrastructurethe basic physical and organizational

structures needed for the operation of a society or enterprise

Page 18: MACPA PIU - Spring 2009

CPA Profession in the Spotlight

Page 19: MACPA PIU - Spring 2009

Fair Value Accounting under fire?

Page 20: MACPA PIU - Spring 2009

What is under the CPA Profession?

Page 21: MACPA PIU - Spring 2009

Federal Laws & Regulations – SEC, DOL, Treasury, GAO, PCAOB

CPA Profession Standards – AICPA & FASB, GASB, FASAB, IASB, IFAC

State CPA Statutes

police power of the states to protect their citizens vs commerce clause

Page 22: MACPA PIU - Spring 2009

SECFASB FASB IASB

IFRS

PCAOB AICPAASB IAASB

AICPAPEEC

AICPAPEEC IFAC

Public Company Private Company Int’l Company

FinancialReporting

Attest PerformanceStandards

Code of Conduct

Another View

State Oversight & Enforcement of CPA LicenseCPALicensure

Page 23: MACPA PIU - Spring 2009

MD ComptrollerMD Comptroller

CAQ

US Treasury

MD Comptroller

Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA

Page 25: MACPA PIU - Spring 2009

Madoff’s auditor

David Friehling, CPA faces 105 years in prisonFor issuing false audit reports

• Sole Practitioner• Accused of issuing audits of Madoff Securities• Lied on AICPA membership renewal about peer

review

Page 26: MACPA PIU - Spring 2009

Satyam + PWC

Ramalinga Raju – CEO created $40 billion in fake billing and cash PWC auditors missed cash accounts?

Page 27: MACPA PIU - Spring 2009

Changes in our Infrastructure

The Infrastructure for the CPA Profession is maintained by your Professional Associations

AICPA & State CPA societies (MACPA)

Page 28: MACPA PIU - Spring 2009

Timothy Geithner,Secretary of the

Treasury

Mary Schapiro,SEC Chief

Paul Volcker,Chair, Economic Recovery

Advisory Board

Gary Gensler,Chair, Commodity Futures

Trading Commission

Ben Bernanke,Chair, Federal Reserve Board

Sheila Bair,Chair, FDIC

The Obama CabinetThe year of the REGULATOR

Page 29: MACPA PIU - Spring 2009

Massive Changes in our Regulatory Structure

Page 30: MACPA PIU - Spring 2009

First PCAOB now FAOB?

New 5 member oversight board proposed by Congress – March 6th,

2009

Page 31: MACPA PIU - Spring 2009

The Real Costs of Changing FMV?

“Confidence, trust, and numbers that investors can believe in are the stuff that make or break the capital markets. When investors question the validity of numbers, they sell and wait, rather than buy and invest.

Yet those charged with building confidence and trust and presenting numbers that can be believed are under sustained attack -- and they are losing.”

- Arthur Levitt, Weakening a Market Watchdog in Washington Post – March 26, 20009

Page 32: MACPA PIU - Spring 2009

Standards Changes• AS 5 - PCAOB• IRFS – SEC International gets legs• Fair Value Accounting• XBRL – SEC mandatory• Codification Project – FASB• Clarity Project – ASB

– Convergence with international– Risk-based standards already in int’l format

(SAS 104-111)• SAS 112 Communication• Internal Control – COSO• Fin 48 delay• Delay of SOX 404 for “small” caps

Page 33: MACPA PIU - Spring 2009

MD ComptrollerMD Comptroller

CAQ

US Treasury

MD Comptroller

Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA

Page 34: MACPA PIU - Spring 2009

Improving Your Infrastructure – The CPA License• Initial Licensure

– Transfer of Grades

• Temporary Practice (mobility)• Reciprocal License – 4 in 10• Reinstatement – requires 80 hours of CPE• Built around ‘substantial equivalency’

Page 35: MACPA PIU - Spring 2009

35

KEY

GOALS/RESULTS

PROJECTS/STRATEGIES

PRODUCTS/SERVICES/

SITES

PEOPLE

KEY EVENTS

LEARNING

MACPA Founded 1901

Dateline

Gov. John Smith signs CPA Bill

April 10, 1900

MACPA first attempt

to rights to audit

MACPA passes 1924 Law

1900 19871974 1976

In the Beginning...

MACPA stops

several

attempts to

amend 1924

law

Maryland becomes the 1st state to restrict

practice for CPAs

1901

Larry Kamanitz chairs Legislative

Committee

MACPA tries

to pass CPE

Bill in 1974

& 1975

AG opinion of 1981Grants rights to non-CPAs for Reviews &

Comps.

MACPA Passes Mandatory CPE Bill

Sarbanes-Oxley

Act of 2002

Max Teichman, Frank Blacklock &

William Rogers

Interstate Practice &

Uniform Accountancy Act

Rise of special interests

& non-CPAs

HB 1296 Mobility Passes

Quality Review Legislation fails

150 Hours Ed Requirement passes

Effective date is January 1, 1999

• CPA Bill signed April 10, 1900• MD is 3rd state (NY & PA)

1922 1924 1981

Non-CPAs begin

attempts at 2nd

Tier license

2005

HB 1261 re-writesCPA Law - 1986

MACPA amendments to ed requirements fail

Dawson Grove chairs Legislative

Committee

Allen Deleon chairs Legislative

Committee

1993 MACPA passes

MD LLC & LLP Acts

Rights & Recognition• Privilege of Self-

Regulation• Right to Sole Control

over an Area of Practice

History of CPA Legislation

1993 20062003

UAA MACPA passes 1 yr

Experience Requirement

2007 200820011999

SB 560 DefeatedMaryland Corporate Accountability Act

MACPA requests reversal of AG Opinion – “This is not an audit”

language added

Terry Hancockchairs Legislative

Committee

MACPA Forms Task Force and surveys members

88% Sub Equivalency76% Peer Review & Safe Harbor

68% Non-CPA Ownership

State Board of Accountancy

formed

UAA MACPA passes

non-CPA Ownership

Computerized CPA exam

Separate Fund Bill passed

Maryland Special Session

Oct – Nov 07

MACPA defeats Sales Tax on Services

Amends Corporate Tax Reporting Bill from

special session

State Board

passes qualify

Peer Review for

CPE credit

MACPA wins use of “consultants” in firm

letterhead at State Board

Accounting Reform task

Force addresses

SOXState Board Hearing

May 1, 2003

New simpler CPA exam Education Rules

HB 1223 Mandatory Peer Review

Maryland Association of CPAs

Page 36: MACPA PIU - Spring 2009

Meet Bill…

• Bill files tax returns in 9 states + Maryland

• Last year he would have required additional state licenses in all states (except OH, VA, MO, WI)

• He would have had to register as a tax advisor (est $250)

• He would have to report to two state boards with different CPE requirements

• He would have had to charge & collect sales taxes on his accounting & tax services

What would this cost you?

Page 37: MACPA PIU - Spring 2009

Meet Jane…

• She is a CFO of a mid-size company operating in 5 states with original license in Virginia

• Last year she would have faced a $1,500,000 penalty and 5 years in jail

• Had to implement Fin 48• Pay sales tax on all

accounting, tax, and computer services

• Could use CPA and not get her MD license without taking 150 hours

Page 38: MACPA PIU - Spring 2009

Meet James…

• James is a CFO of a public company

• He let his CPA license lapse

• He was told he cannot get his license reinstated

• He has to make sure his accounting team complies with SOX

• Last year he would have faced a $1,500,000 penalty and 5 years in jail

• Pay sales tax on all accounting, tax, and computer services

Page 40: MACPA PIU - Spring 2009

And HB 1296

Page 41: MACPA PIU - Spring 2009

WA

OR

CA

NV

ID

MT ND

SDWY

UT

CO

AZ

NM

AK

HI

TX

OK

KS

NE

MN

IA

MO

AR

LA

MS AL GA

FL

WI

IL

MI

IN

KY

TNSC

NC

VAWV

OHPA

NY

VTME

NH

MA

RINJ

DE

MD

CT

CPA Mobility Legislative Activity 2009

DC

Legislation Introduced 7Mobility Enacted Only

for OtherMobility States -3 GA OK PA

Awaiting Governor Signature 2AICPA March 2009

Mobility Enacted - 32

GU

PR

2009 -2010 Anticipated LegislativeActivity

VNo Formal Activity

37 STATES IN 2 YEARS

Page 42: MACPA PIU - Spring 2009

Leg / Reg Changes you need to know!

New Mobility Law Maryland Individual Tax Preparer Act New Corporate Reporting Requirements Peer Review Requirement – October 1st Prevent Sales Tax on Accounting & Tax Services Stop trial lawyers efforts at repealing contributory

fault doctrine New CPA Exam Requirements New CPE regulations 120 – 150 hours?

CPA Day in AnnapolisJanuary 28, 2009

Page 43: MACPA PIU - Spring 2009

$1,500,000 penalty

Certified Tax PreparerSales Tax on

Accounting & Tax Services

Sarbanes-Oxley ActWhat you (and the world) would miss if MACPA went away…

Page 44: MACPA PIU - Spring 2009

Globalization

Page 45: MACPA PIU - Spring 2009

IFRS – International Financial Reporting Standards

Not if but when…Goodbye GAAP?

Think about this – If SEC timeline is 2014 – what year do you have to convert to show three years of comparable f/s?

Page 46: MACPA PIU - Spring 2009

SEC Roadmap released

Early adopters can file using IFRS

2010Large Accelerated Filers

2014Small-caps

2016

Page 47: MACPA PIU - Spring 2009

Corporate Conversion Timeline

Page 48: MACPA PIU - Spring 2009

Convergence ≠ Sameness

US GAAP – Rules based– Based on a GAAP

hierarchy (level A – D)– Primary accounting

standard setting body is the FASB

– Accounting guidance and interpretation is provided by FASB, SEC, AICPA and EITF

IFRS

– Principles based– No hierarchy, consists

of IASs, IFRSs & interpretations

– Standards and interpretations approved by the IASB

– Interpretations of IFRIC and its predecessor the SIC

25,000 pages vs 2,000 pages

Page 49: MACPA PIU - Spring 2009

“Almost half of small

businesses will be involved in global trade

by 2018 “- Intuit’s Future of Small

Business Report

According to a UPS study,

“Roughly 33% of U.S.

small businesses participate in cross-border trade“

“Nearly one-third of you

(CPA firms < 10) have clients doing business on an international level”

- Greg LaFolletteCPA Technology Advisor

Are you ready for International?

Page 50: MACPA PIU - Spring 2009

Private Company Reporting

1. IFRS with Private Entities Option

2. U.S. Adapted version of Private Entities

3. IFRS with differential reporting

4. Separate U.S. Private Co. GAAP - Revised

5. Separate U.S. GAAP- Maintained and Updated for Private Companies

Page 51: MACPA PIU - Spring 2009

Questions?

• What happens when FASB moves to IASB?

• FAF Funding goes to IASB• Who funds GASB?• Who funds US private company

standards (GAAP)?

Page 52: MACPA PIU - Spring 2009

Pipeline / Workforce

Page 53: MACPA PIU - Spring 2009

Pipeline - Good News20% avg increase in

Graduates & enrollments!

Page 54: MACPA PIU - Spring 2009

Promoting the CPA Career

Tomorrows CPA.org

New/Young Professionals

NetworkMACPA

Page 55: MACPA PIU - Spring 2009

Four Generations in the Workplace

• Matures – 1909-45• Boomers – 1946-64• Gen X – 1965-80• Millennials - 1981 +

up (Y2K, Netgen, Echo-boom, Gen Y)

Which one are you?

Issue: Generational Differences

Page 56: MACPA PIU - Spring 2009

The Benjamin Buttons Paradox

Page 57: MACPA PIU - Spring 2009

Staff Shortage + Four Generations in workplace = Trouble!

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Matures Boomers X'ers Millenials

StaffShortage

Page 58: MACPA PIU - Spring 2009

Biggest Issue Facing NYPNs• Bridging the Gap between college & real world• Under-Developed Skill Sets

– Leadership & Communication– Time Management & Organization– Analytical Skills– Technical Skills

• Work-Life Balance• Limited Networking Opportunities• Intimidation• CPA Exam• Lack of a Voice in Profession

Page 59: MACPA PIU - Spring 2009

Meet the NYPNs… Remember when you were ‘made’ to be a member of MACPA & AICPA?

According to the William E. Smith study of Association value: Benefits to the professionals and their employers include higher morale, increased employer loyalty, networking, professional development, leadership experience, professional community and big-picture thinking.

Page 60: MACPA PIU - Spring 2009

Deloitte’s Global Workforce Advice• Long-term career development and multiple

experiences within a single organization• Sense of purpose and meaning in work• Availability and access to mentors across the

company. (The focus should not only be on making senior staff mentor younger associates, but also ensuring that people connect and share experiences across all levels of the organization, and across relevant departments and areas of expertise.)

• Work-life flexibility• Tech-savvy work environment (for example,

access to online problem-solving and learning tools)

• Open social networks that embrace open and honest communication

Source Deloitte Global Manufacturing survey

Page 61: MACPA PIU - Spring 2009

CPA Exam changes

• Paper-based• 2 x year May &

November• 5 sections

• Computerized• Anytime• 2 months per quarter• Pass all sections in 18

months (to keep passed sections)

• 4 sections• 70% new content!

Then: Now:

update

Page 62: MACPA PIU - Spring 2009

Steps to become a CPA1. Get Accounting Education – 150 hours

2. Sit for & Complete CPA Exam

3. Take AICPA Ethics self-study & report grades to State Board

4. Complete 2,000 hour experience requirement (interning counts) RPE form

5. Take the official oath at the Swearing-in Ceremony

Page 63: MACPA PIU - Spring 2009

Promote the CPA license

Next ceremony - June 16, 2009At the Maryland Business & Accounting Expo

Maryland DLLR Swearing-in of new CPAs

Page 64: MACPA PIU - Spring 2009

Meet Karen…• Recent graduate from U

of MD• She has 150 hours but

missed a oral communication course and has wrong ethics course

• She does not know what the rules are or when to sit

• She is thinking about sitting in Delaware or Virginia to get around rules

Page 65: MACPA PIU - Spring 2009

2004 2005 2006 2007 20080

50

100

150

200

250

300

350New CPAs in Maryland – Filling the Pipeline

293% Increase in 5 years

23%291

74

236

194166

Page 66: MACPA PIU - Spring 2009

Technology

Page 67: MACPA PIU - Spring 2009

“As it relates to science and technology, the rate of change in the next decade, is likely

to be 4 to7 times faster than in the last decade. If it is 4x faster it would be like

planning for 2006 in 1890, if it is 7x faster it would be like planning for 2006 in 1670.”

-Expert on Education Panel, The Aspen Institute, 2007

Page 68: MACPA PIU - Spring 2009

Guardians cannot keep up with Commerce

“Even the regulators can't keep up. A Senate study in 2002 found that the SEC

had managed to fully review just 16 percent of the nearly 15,000 annual reports that companies

submitted in the previous fiscal year; the recently disgraced Enron hadn't

been reviewed in a decade."

Source: Wired magazine 17.03 March, 2009

Page 69: MACPA PIU - Spring 2009

Transparency Now! – A Wired Manifesto

Source: Wired magazine 17.03 March, 2009www.xbrl.org

Page 70: MACPA PIU - Spring 2009

Enhanced Business Reporting

www.ebr360.com

Page 71: MACPA PIU - Spring 2009

By 2010, Millenials/Gen Y-ers will outnumber Baby Boomers.

Technology & Web 2.0

Page 72: MACPA PIU - Spring 2009

“If you think about the media environment an average American

teenager lives in, to walk into a classroom (or one of our Associations)

that doesn’t have any of that media must be like walking into a desert.”

– Steve Maher, High School teacher PBS Special “Growing Up On-line”

Page 73: MACPA PIU - Spring 2009

Meet the Gaming Generation• Games make it easier to understand difficult

concepts – 51%• I would be more engaged in the subject – 50%• I would learn more about the subject – 46% (56%

of students in K-2 chose this as their #1 reason)• It would be more interesting to practice problems –

44%

Source: Project Tomorrow – Speak Up 2007 report

Page 74: MACPA PIU - Spring 2009

1.Mobile Learning

2.DIY - Do-it-Yourself Learning

3.Flexible Learning Environments

4.Virtual Worlds

5.Games & Simulation

Five Learning Trends for 2009

Chief Learning Officer Magazine – January 2009

Page 75: MACPA PIU - Spring 2009

Accounting Educators in Second Life

Dr. Mike KratenSuffolk UniversityDr. Robert BloomfieldCornell UniversityDr. Steve HornikUniversity of Central Florida

Page 76: MACPA PIU - Spring 2009

FASB is there!

Page 77: MACPA PIU - Spring 2009

Tools to keep you ahead of the game• Listservs• Podcasts• Blogs

– CPASuccess.com– NewCPAs.com– TCPAblog.com– CPALegislativeinsider.com– CPAIsland.com– SLACPA.org– CPALearning2.com

MACPA.org -> Resources - > Communications

Page 78: MACPA PIU - Spring 2009

More ways to CONNECT with MACPA

• Linked-In – MACPA Group• Facebook – NYPN Group• MACPA on Twitter• Tom on Twitter• Bill on Twitter• Youtube videos from MACPA• Slideshare• Visit us in Second Life

Page 79: MACPA PIU - Spring 2009

1. Start Gaming and take a session in Second Life

2. Do our 33 things in 15 minutes a day www.cpalearning2.com

3. Get an iPod and listen to our cool podcasts – CPA Spotlight

4. Check out our blogs and post a comment or subscribe in a blog reader (RSS)

4 tips to cross the digital divide

Page 80: MACPA PIU - Spring 2009

High Leverage Opportunities

Page 81: MACPA PIU - Spring 2009

Who will lead us to a better future?

Page 82: MACPA PIU - Spring 2009

“CPAs ARE the DISCIPLINE in business!”

Jim Collins

Page 83: MACPA PIU - Spring 2009

Perceptions of CPAs Largely Consistent Across All Audiences

BDMs Large Biz BDMs Sm-Med Biz Investors CPAs YPs

1 Has integrity Competent Competent Has integrity Competent

2 Competent Has integrity Has integrity Competent Has integrity

3Able to synthesize

information from multiple sources

Objective Objective ObjectiveAble to synthesize

information from multiple sources

4 ObjectiveAble to synthesize

information from multiple sources

Able to synthesize information from multiple

sources

Able to synthesize information from multiple

sourcesAble to see the big picture

5 Focused on client needs Focused on client needs Focused on client needs Focused on client needs Objective

6 Able to identify potential problems before they happen

Able to identify potential problems before they happen

Able to identify potential problems before they happen

Able to see the big picture Focused on client needs

7 Technologically adept Technologically adept Technologically adept Demonstrates leadershipAble to identify potential

problems before they happen

8 Communicates effectively Able to see the big picture Able to see the big pictureAble to identify potential

problems before they happenDemonstrates leadership

9 Able to see the big picture Communicates effectively Communicates effectively Technologically adept Technologically adept

10 Demonstrates leadership Demonstrates leadership Creative and innovative Communicates effectively Communicates effectively

11 Creative and innovative Creative and innovative Demonstrates leadership Creative and innovative Creative and innovative

Rank

Page 84: MACPA PIU - Spring 2009

Image is better than pre-Enron highs

Page 85: MACPA PIU - Spring 2009

The Year of the CFO

As financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before. Recession, credit crunch and the increasingly complex nature of global companies will all play directly into the bean counter’s hands.

Source: The Economist Magazine The World in 2009 Nov, 2008

Page 86: MACPA PIU - Spring 2009

IFRS Opportunity? – Meet Joe Box, CPA - CFO of Joe Money Machinery

“Well, the IASB is coming out with a simplified version for private companies. With IFRS, you mark-to-market more assets. We're a 72-year-old company that has real estate on our books at historical cost, so there could be a big benefit in IFRS based on the substantially higher fair market value for that property. Any private-company CFO should be knowledgeable about it, to determine whether to consider adoption.”

“But even more importantly, it has been my objective that our key bankers consider me knowledgeable in the issues important to their commercial portfolio. XBRL is another one.”

Page 87: MACPA PIU - Spring 2009

Recession Playbook

Two priorities:

1) manage your short-term credit, cash and performance needs

2) effectively position and utilize assets with an eye toward post-recession growth.

“High performers seize the opportunity of a recession

to outdistance their competitors and position

for future growth.”

Page 88: MACPA PIU - Spring 2009

CFO Competencies Needed

• Change Management (C)

• Strategic Ability (S)• Critical Thinking (S)• Business

Perspective (C)• Organizational

Agility (C)• Dealing with

Ambiguity (S)

• Communication & Leadership

• Strategic & Critical Thinking

• Focus on the Customer, Client, and Market

• Interpretation of Converging Information

• Technologically adept

C – CatalystS - Strategist

Page 89: MACPA PIU - Spring 2009

CFO Opportunities

• Business process efficiency – LEAN• Cash flow & Financing• Risk Management• Budget Scenarios• Young Professionals – reverse mentoring

Page 90: MACPA PIU - Spring 2009

Firm Opportunities

• Talent acquisition• Succession planning• Strengthen value-added relationship with

clients (cash flow, financing & cost control)

• International• Governance• Young Professionals – reverse mentoring

Page 91: MACPA PIU - Spring 2009

Transparency & Accountability“Publicity is justly

commended as a remedy for social and industrial diseases. Sunlight is said

to be the best of disinfectants; electric light

the most efficient policeman.”

- Supreme Court Justice Louis Brandeis

Source: Wired magazine 17.03 March, 2009

Page 92: MACPA PIU - Spring 2009

Sustainability – green & lean

Page 93: MACPA PIU - Spring 2009

Financial Literacy

www.feedthepig.orgwww.360financialliteracy.org

Page 94: MACPA PIU - Spring 2009

So what are we doing for you?

Page 95: MACPA PIU - Spring 2009

Six ways to help you weather the storm

1. 24 Hours of Free CPE

2. New Career Center

3. Economic Resource Center

4. Shared Services Purchasing Programs

5. Maryland Business & Accounting EXPO

6. Promoting & protecting your CPA license

Page 96: MACPA PIU - Spring 2009

MDBIZEXPO June 16th & 17th, 2009

www.mdbizexpo.com

Page 97: MACPA PIU - Spring 2009
Page 98: MACPA PIU - Spring 2009

Managing in Turbulent Times

1. Context - Understand the “brutal facts of your reality”

2. Strengths Challenges Opportunities & Threats – Differentiate yourself for high leverage opportunities

3. Envision your future

4. Manage for today & tomorrow– Liquidity (balance sheet– Productivities – 3 types of IC (human,

structural & social)– Costs of the future

Page 99: MACPA PIU - Spring 2009

“You must never confuse faith that you will prevail in the end – which you can never afford to lose – with the discipline to confront the most brutal facts of your current reality, whatever they might be.”

Holding those two seemingly contradictory notions in his head simultaneously was the key to Stockdale surviving, even thriving, in his experience.

Admiral James Stockdale 1923- 2005

The Stockdale Paradox

He returned home after eight years of imprisonment in the “Hanoi Hilton” during the Vietnam War

Page 100: MACPA PIU - Spring 2009

Connect – Protect - Achieve!“Association members

earn, on average, $10,000 more per year than non-

members”And

“are 19% more likely to say they are “very-

satisfied” with their jobs than non-members”

Where the Winners Meet Study by the William E. Smith Institute for

Association Research

Page 101: MACPA PIU - Spring 2009

Tom Hood, CPA.CITPCEO

Maryland Association of CPAsBusiness Learning Institute

(443) 632-2301E-mail [email protected]

Page 102: MACPA PIU - Spring 2009

Maryland Association of CPAs – founded 1901 to promote and protect CPAs and help them thrive in the rapidly changing environment – 10,000 members

Business Learning Institute – founded in 2000 with a mission to help organizations deliver competency-based curriculum, courses, content and community to enhance learning and grow intellectual capital for organizational and executive leadership

Second Life Association of CPAs – founded in 2006 With 459 members and two islands (CPA Island & CPA Island 2) with a mission of building a community of people interested in exploring the possibilities of CPAs in Second Life


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